Bonham Carter: Is RM the canary in the FTSE's coal mine?

[TrueBlueTerrier]

Bonham Carter: Is Royal Mail the canary in the FTSE's coal mine?

http://uk.reuters.com/article/2013/10/1 ... ps&rpc=401" onclick="window.open(this.href);return false;

Jupiter's chief executive Edward Bonham Carter has acknowledged concerns that the frenzy over the Royal Mail's flotation could signal the top of the market.


Shares in the newly listed company changed hands for almost 40% more than their offer price in early trading, following heavy oversubscription.

'When the retail investor gets excited, should you worry?' asked Bonham Carter (pictured), adding that the Royal Mail could represent 'a canary in a coal mine'.


His colleague Ian McVeigh, the Citywire AAA-rated manager of the Jupiter UK Growth fund, said that the FTSE could indeed be facing 'a tricky few years'.


However, noting that markets looked to be in the middle of their typical range, McVeigh maintains faith in shares for the long term. 'On a 10-year view, I wouldn't put my money anywhere other than equities,' he said.


By style, McVeigh has tended towards contrarian investments. In the 2000s, for example, he was an early convert to resource shares. 'It was crystal clear that China hadn't been priced into mining equities,' he explained, as most analysts expected commodity prices to revert to their lower long-term averages.


But once he and his team detected a more 'cautious tone' during a trip to China, McVeigh swiftly exited those positions. 'The supercycle had become received wisdom,' observed McVeigh.


At that point McVeigh turned back to domestic plays. 'The most pessimistic view then was towards the UK consumer,' he recalled. In particular McVeigh snapped up banks, which traded at one third of their book value.


'We're looking for extreme pessimism so we can buy it,' McVeigh summarised.

[fishtank]

Jupiter's chief executive Edward Bonham Carter

First of all Jupiter doesn't have a Chief Executive,It's a giant ball of gas so that's just silly but secondly and more importantly his sister would definitely make my top 5 and yes I would.

[scoobydo79]

Jupiter Does it have any connection with "Jupiters Cock" as one forum member sometimes mentions?

[mickeymacca]

Jupiter's chief executive Edward Bonham Carter

First of all Jupiter doesn't have a Chief Executive,It's a giant ball of gas so that's just silly but secondly and more importantly his sister would definitely make my top 5 and yes I would.

Seconded....the bit about Helena, don't know about the other stuff....